Ghana's public debt stock now GH¢341.8 billion as of September 2021

Ghana’s current debt stock equivalent to 77.8% of GDP

Value of fresh loans between July and September amount to GH¢5.9billion

Increasing debt rate due to depreciation of cedi to dollar

According to the November 2021 Bank of Ghana Summary of Economic and Financial Data, Ghana’s public debt stock hit GH¢341.8 billion as of the end of September 2021.

This is equivalent to 77.8% of Gross Domestic Product (GDP) as stakeholders say Ghana’s debt is becoming increasingly alarming.

Reports have indicated that between July and September 2021, GH¢5.9 billion fresh loans were added to the total debt.

The surge in the debt came largely from the domestic debt and also as a result of the slight depreciation of the cedi to the dollar.

In government’s issuance calendar, it had indicated that for the final quarter of 2021 that it will borrow just about a billion cedis, and therefore many market watchers, analysts and economists will be hoping the debt level for the final quarter of this year will at least remain stable from the present level.

According to the data from the Bank of Ghana, the domestic debt went up to GH¢178.1 billion in September 2021, up from GH¢173.9 billion recorded in July 2021. This is equivalent to 40.5% of GDP.

The resultant consequence is the ‘crowding out effect” whereby businesses are competing for borrowed funds with the government.

Importantly, the financial sector resolution bond stayed the same at GH¢14.9 billion in September 2021. This is equivalent to 3.4% of GDP.

External debt fell by US$100 million in August to US$27.9 billion in September 2021, equivalent to 37.2% of GDP.

However, the cedi component of the external debt shot up because of the decline in the value of the cedi to the dollar.